HDBank has asserted its top-tier position with positive results, enabling it to better support its customers’ sustainable growth.
According to the information disclosed at the conference, in the first half of 2024, HDBank achieved impressive performance, ranking among the top 10 fastest-growing banks in the industry with a pre-tax profit of 8,165 billion VND, a 48.9% increase compared to the same period last year. HDBank continues to lead the industry in terms of business efficiency, with both ROE and ROA reaching high levels of 26.1% and 2.1%, respectively.
For the first six months of 2024, HDBank’s total income reached 16,045 billion VND, a 32.9% increase year-on-year. The bank has further strengthened its capital buffer, with the capital adequacy ratio (CAR) under Basel II reaching 13.94%. The consolidated non-performing loan ratio was well-managed at 1.59%, while the parent bank’s NPL ratio remained below 1.37%.
The bank’s lending activities also recorded positive results in the first half, with a growth rate of 13.3%, more than double the industry average. This was driven by a continued focus on retail lending, a strategy to redirect capital to develop local areas by prioritizing lending to the agriculture and rural sectors, in addition to its strengths in value chain lending, SME lending, green credit, and export industries.
At the conference, Mr. Pham Van Dau, CFO of HDBank, shared that the bank’s cost of capital significantly decreased to 1.7% from the beginning of the year and 1.9% compared to the same period last year. Additionally, the net interest margin (NIM) exceeded expectations, reaching 5.7% against a target of 5.1%. The cost-to-income ratio (CIR) was maintained at 34.2% despite the bank’s ongoing investments in its network and technology infrastructure. “These positive results create favorable conditions for HDBank to continue stabilizing lending rates and supporting customers towards sustainable development”, Mr. Pham Van Dau informed investors.
Recently, HDBank distributed the first cash dividend for 2023, amounting to 10%, as part of its plan to distribute the highest dividends in the system at 30%. Mr. Pham Van Dau affirmed that, based on the current business results, the bank is on track to maintain its tradition of paying high dividends in 2025, as it has done in previous years.
During the conference, shareholders inquired about the valuation of HDB stock. Mr. Tran Hoai Nam, Deputy General Director of HDBank, responded that the current valuation of HDB shares is considered low according to the P/B and PE ratios.
With many strong indicators, such as an ROE of 26.1%, the valuation of HDB shares is significantly lower than the industry average, and there is ample room for growth in digital banking. Currently, HDB’s P/B stands at 1.4 times, and its P/E is below 6.x. In comparison, during more stable periods, these ratios reached 2.3 times and P/E was over 10.x, almost double the current levels. As the market improves and short-term fluctuations subside, valuation levels are expected to return to their previous highs.
Forging Ahead as a Multi-Capable and Sustainable Bank
The impressive semi-annual business results for 2024, coupled with the accumulated internal strength over 11 years of sustainable growth, have further empowered HDBank’s strategy to become a top multi-capable and modern bank in Vietnam.
At the conference, HDBank’s leadership shared that the bank is accelerating its digitalization strategy and investing in technology, particularly in artificial intelligence (AI) and big data analytics, to optimize its financial services. This has been a key driver in expanding the bank’s customer base and achieving positive outcomes.
Specifically, in the first half of 2024, the number of new customers acquired through digital channels increased exponentially, doubling the number from the previous year. 94% of customer transactions were conducted through digital channels, while e-banking transactions surged by 130% year-on-year.
In addition to its digital channels, HDBank continues to excel in traditional models, becoming one of the few banks to successfully establish a nationwide network of branches and transaction offices across all 63 provinces and cities in Vietnam.
Beyond digital initiatives in internal operations, HDBank has implemented complex projects based on the RFM (Recency, Frequency, Monetary) model to support effective business decisions. This model helps HDBank understand customer behavior and forecast future consumption trends, enabling the bank to focus resources on potential customers and develop sales and product strategies that align with their needs, thereby enhancing conversion rates and cross-selling opportunities for business units.
The success of each business cycle and the long-term vision are attributed to HDBank’s unwavering commitment to its growth strategy, which is closely tied to community welfare. Recognizing the importance of integrating sustainability into its operations, HDBank has proactively embedded specific Environmental, Social, and Governance (ESG) requirements into its business strategy. Recently, HDBank became the first bank in 2024 to publish a Sustainability Report following international standards and committed to achieving the goal of becoming a Net Zero Bank by 2050.
Over the years, HDBank has demonstrated its dedication to greenifying the economy by promoting green credit and supporting the community through preferential loan packages, financing green energy and sustainable development projects, among other initiatives.
Reaping Success, HDBank Garners Prestigious Awards
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